Life life assurance /depression

F

Froogal

Guest
Hi,
We recently got a quote from an irish assurance company with re. to life assurance for extending our mortgage term from 21 years to 32.(we cancelled original policy due to very high loading-222 euros/month so we have open new one to change term.

policy =301,000 euros - 32 years

I was diagnosed with clinical depression in 2001 and put in application form that i was currently on medication/anti-d`s and also a smoker .
the broker we are dealing with stated that if my prognosis was good it shouldnt be a problem, so i authorised my private consultant to release any medical info to assurance company and he thinks my prognosis is very good and they should not load the policy.

This took 3 months as i had to keep following up with both consultant and assurace company.

so finally we got a quote for 179 euros/month and it really floored us as both of us are unemployed and would not make any savings with term change. the breakdown of the new policy was 29 euros/month fro my partner and 150 euros/month for myself ??? i understand that there would be loading for my smoking .it feels like a punishment for having this illness.

our broker was very sympathetic and he talked to the chief medical rep working for this company and he stated he was going to refuse us for this policy due to high risk of my illness???

so at the moment our broker has recommended another company and to release records to them from above company (so we dont have to go through medicals etc again).i have the application form and it requires me to tick a "data consent transfer" to apply for new policy

I am confused and dont know what to do as i lost trust in the whole system..thats why im here

1. Are my medical records available to any/everyone not only assurance companies if i tick this data consent box.?

2.was i right to authorise my consultant to release my med history.?

3. Is there such thing as an assurance company that is accomadating /leniant with people that disclose depression.?

4.should i go ahead with the new application??

Thanks for reading this

F
 
Hi

I can understand your frustration. Typically life assurance firms charge an extra +50% to +150% loading for depression depending on the severity of it.

In reply to your questions;

- If you apply to an insurance company they will ask you to tick a box so they can request medical information. Only the company you apply to can view this info unless you give authority to another company to view this info and then only they can view it. It wont be made public.

- You wont get life assurance cover without giving conscent to obtain medical evidence (only exception being an Over 50s plan where they charge more in lieu of seeking medical info). You dont have a choice if you want a new policy, the insurance company has to be able to guage the medical risk.

- I wouldnt say there is one particular company that goes easy on depression, its done on a case by case basis but I have had some good acceptance terms for clients from Irish Life if this is any help.

- Its definately worth getting a second opinion from another company as sometimes companies can vary when it comes to loading.

Hope this helps.


www.CheaperLifeAssurance.ie
 
It puzzles me as to why depression should be a factor in increasing the premium of a life insurance policy. Is'nt suicide the greatest risk from depression ? And isn't suicide not covered under any life policy so why charge more for a risk which they do not cover ? In fact strictly speaking suicide would mean no pay out and a greater profit for the life company as it would have gotten premiums for nothing.
 
Suicide is usually excluded for the first 12 months only. After that it becomes a risk for the insurer.
 
NorfBank said:
Suicide is usually excluded for the first 12 months only. After that it becomes a risk for the insurer.
Click to expand...

Thanks I didn't know that. I remember reading some articles about people in the US and elsewhere making their death look like an accident so that their families could claim.
 
It depends on the life company and whether the policy is assigned to a mortgage lender as well.

Ask your broker to ring around the market to see who will offer best terms, if at all. And yes do trust the system and your broker. It is at times like this that they are worth their weight in gold.

Good luck.

Patrick
 
unfortunately ringing around won't work -as your broker will only be able to compare the book rates - while it might be a bit tedious it will be worth the 'hassle' of giving your full medical history to different underwriters (companies) - there can be very different views in terms of risk ratings - worth the effort - but always give the full information as non-disclosure could result in non payment of claim
 
10romans said:
unfortunately ringing around won't work -as your broker will only be able to compare the book rates - while it might be a bit tedious it will be worth the 'hassle' of giving your full medical history to different underwriters (companies) - there can be very different views in terms of risk ratings - worth the effort - but always give the full information as non-disclosure could result in non payment of claim
Click to expand...

The broker has full details of the depression so the broker can ring around with full details.
 
ringing around doesnt always work. most of the companies will tell you that they cant say until a formal application form is submitted and they assess the risk..that is unless the broker knows someone very well in the underwriting department of the companies so will steer them.
 
Thanks all for your feedback esp. Stevie C. We might aswell go ahead with new applic.-nothing to lose . It is Irish Life so fingers crossed -great website!!
 
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